Media Blog

Market Closes up 400+

On news that the government might set up a Resolution Trust type entity to shore up the banking industry:

United States – WASHINGTON (Reuters) – The U.S. Treasury Department and Federal Reserve declined to comment Thursday on any discussions Treasury Secretary Henry Paulson may have had with lawmakers about a Resolution Trust Corporation-style fix for a financial market crisis.

“We’re not going to comment on rumors,” Treasury spokeswoman Jennifer Zuccarelli said.
A congressional aide told Reuters that Paulson has been discussing with lawmakers a proposal to create an entity to deal with bad debt that would be similar to the institution established in 1989 to clean up massive losses in the savings and loan industry. (Reporting by Mark Felsenthal; Editing by Dan Grebler)
Something McCain suggested earlier in the day.